Monday, December 13, 2004

Nortel Provides Estimated Unaudited Results

Nortel Networks announced limited estimated unaudited financial results for the third quarter of 2004, and updated limited estimated unaudited results for the first and second quarters of 2004 and for the years 2001, 2002 and 2003. The company expects to file final reports on 10-January-2005.

Estimated unaudited revenues in Q3 2004 were approximately US$2.3 billion and the Company estimates an unaudited net loss per share in the quarter of US$0.06. The net loss per share in the quarter included approximately US$0.03 per share for the majority of the investment costs associated with a wireless contract in India and approximately US$0.02 per share in special charges associated with restructuring activities in the quarter, primarily related to the work plan announced in August 2004 and updated in September 2004, which were partially offset by a gain of approximately US$0.01 per share on the transfer in the quarter of certain assets of the directory and operator services business to a joint venture in return for a minority equity interest in such venture.

While customer support remains strong, the ongoing restatement activities and the internal restructuring and realignment programs initiated in August have impacted business performance in the third quarter but this impact is temporary. I expect Q4 2004 revenues in the range of US$2.8 billion to US$2.9 billion," said Bill Owens, president and CEO of the company.

Some highlights for Q3:

Sales by Product category:

Wireless Networks 46%

Enterprise Networks 26%

Wireline Networks 17%

Optical Networks 11%

Sales by Geography:

United States 49%

EMEA 26%

Asia Pacific 14%

Caribbean and Latin America 6%

Canada 5%

Gross Margin 37%

See also